Homebuy

Homebuy was introduced in April 2006 to enable Council and Housing Association tenants, key workers and other first time buyers who would otherwise be unable to purchase a home outright, to get a foot on the ladder of home ownership.

There are 3 main Homebuy products, each based upon equity sharing, to offer applicants choice in the homes they purchase. These are:-

This scheme enables tenants of Local Authorities and Housing Associations to buy a share in their current home at a discount.

This scheme allows people to buy a percentage or share of a newly-built property.

This scheme provides an equity loan to enable people to buy a property on the open market

To apply for any of these schemes please contact our Homebuy Agent, Metropolitan Home Ownership, on 0845 230 8099 or online at www.housingoptions.co.uk (opens in a new window)

This scheme enables tenants of Housing Associations and Councils to buy their existing social home at a discount.

Eligible applicants are tenants who have lived in their property for a minimum of 5 years, provided their landlord offers the scheme. In low demand areas, social landlords would be able to extend to non-social tenants at their discretion.

The minimum share which can be purchased is 25%.

Applicants must be able to demonstrate that they can afford the ongoing costs. Buyers must repay the discount if they re-sell within five years. Applicants will receive a share of the sales proceeds, in proportion to their equity share when they sell the property.

Social HomeBuy fills a gap in the market for existing social tenants who can't afford or don't have the Right to Buy or Right to Acquire. The current Voluntary Purchase Grant scheme is merged into the new scheme.

An applicant can purchase a share of the equity in a new home, built with public subsidy, or on public sector land, or through the First Time Buyers' Initiative.

Eligible applicants are key workers, existing social tenants, those on the housing register and other first-time buyers.

The buyer pays for as much as they can afford through savings and/or a mortgage - in some circumstances it may be appropriate to purchase a share of less than 50% of the home's value. The remaining share is held by the developer.

Applicants must be able to demonstrate that they can afford the ongoing costs. Key workers who leave eligible employment must buy the developer's share within two years at the market value at the point of sale. Applicants must repay the equity loan as an equivalent proportion of the sale proceeds when they sell.

New Build HomeBuy merges principles of existing HomeBuy, Shared Ownership and Key Worker Living programmes, plus the First Time Buyers' Initiative and London-Wide Initiative schemes.

Under this scheme, a buyer can apply for an equity loan of up to 25% (a maximum of £50,000.00) of the cost of a home on the open market.

The buyer pays for as much as they can afford through savings and/or a mortgage. Their share should be at least 75% of the purchase price. The remaining share is held by the provider of the loan for this element of the purchase.

Applicants must be able to demonstrate that they can afford the ongoing costs. Key workers that leave eligible employment must repay the equity loan within two years, as a proportion of the property's market value at the time. As a term of the loan agreement, the provider will be able to require a charge to be paid on their share of the home. Applicants must repay the equity loan as an equivalent proportion of the sale proceeds when they sell.

Open Market HomeBuy merges principles of the existing HomeBuy, Shared Ownership and Key Worker Living schemes

Half of the homes provided will be for key public service workers. The other half will be for individuals and families who could not own a home without extra help.

Homes built on land from a variety of sources will be offered to first-time buyers at less than the market price.

The price the buyer pays will, at a minimum, meet the construction costs. The land will enable the gap between that price and the full market value price to be bridged. An equity share will be retained either by the landowner or by the housing provider.

Over time, in most instances, buyers will be able to increase/staircase their share of ownership in 10% tranches to 100%.

To help buyers adjust to the financial responsibilities of home ownership, the intention is that charges associated with the share of the property they do not own will be waived for the first three years. In year four, a charge of 1% of the unsold equity will be introduced, rising to 3% in year six. Income from these charges will be recycled into the scheme.

When buyers move on, the landowner will have first refusal to buy back the home so that it can be used to help another first-time buyer.

Applicants wishing to join the scheme may be refused if they are in rent arrears or have a history of anti-social behaviour.

The scheme offers brand new or refurbished apartments at a subsidised rent.

The rent charge will normally be 20 – 30% lower than normal open market prices.

If you are a key worker, the rent will cease to be subsidised if you leave your profession.

To apply for any of these schemes please contact our Homebuy Agent, Metropolitan Home Ownership, on 0845 230 8099 or online at www.housingoptions.co.uk (opens in a new window)